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Nov 19, 2012

Graduates—Kick Off the Next Chapter on the Right Foot

It’s a big jump from college or other technical schooling to
“the real world.”Here’s a free
graduation gift … five smart money moves for graduates.

Smart Money Move
#1:Don’t Buy a Car

Most students have either gotten by with no car or a clunker
car during their college years.Now that the prospect of “getting a job” is a reality, a car might seem
like a good investment.However,
be cautious … you don’t need a NEW car to have adequate transportation to and
from work.A new car may be
unnecessary and will keep you on a tight budget (with that hefty monthly
payment) for years.Instead, consider
buying a car that’s gently used, one to three years old.It’ll look like new but save you a lot
of money.And if you’re looking
for something to save for, think about a starter home.

Smart Money Move
#2:Get in the Budget Habit

Don’t let the “b” word scare you.When you have fun things you want to do or items you’d like
to splurge on, a budget really comes in handy.A budget is like a spending plan that helps guide your
spending and saving.This way you
can set aside money for bills and necessary things and still have money left
over for the “fun stuff,” without the guilt.

Smart Money Move
#3:Use Envelopes With Cash

Rent or mortgage payment.Check!Water
bill.Check!Electric bill.Check!Loan payments.Check!If you’re afraid
you’ll spend the cash when you first get paid, label envelopes with your
payment category.Write out a
check, and put it in each envelope.Then, stash the envelopes until payments are due.Of course, have an envelope for your
“mad money” too, but once the envelope is empty, your funds have run out, and
you’ll have to cut back until the next pay period.

Smart Money Move
#4:Consider Moving Out on Your
Own

Many college graduates return to their parent’s home to save
money, but most of them lack the discipline to save and end up blowing their
earnings on cars, entertainment, electronic gadgets, and their social life.You’ll grow faster and learn more by
being on your own, even though it may be a struggle at first.It’s easy to let Mom and Dad take care
of everything, and you may become too comfortable.Being on your own forces you to take your finances into your
own hands and start making smart—albeit sometimes difficult—grown-up decisions.

Smart Money Move
#5:Educate Yourself About
Finances

When you needed to learn about math, you took a math course and
did math exercises, right?Same
rules apply.The best way to learn
about personal finance basics is to read a good personal finance book—one that
covers all the basics without boring you to tears.You could also meet with your banker to get information and
have them help you create a customized plan for you!

Sure, making mistakes is part of growing up, but why make
costly financial mistakes if you don’t have to?With a little common sense, and by following our five smart
guidelines, you’ll be embarking on a successful financial future!A+

Watch this video to get more helpful tips from Bank of Luxemburg Chief Operating Officer Rebecca Edler.

Bank of Luxemburg is:Local – Local management and local decision making.Loyal – We are loyal to our customers and the communities we serve.Lasting – Bank of Luxemburg has lasted through all the economic cycles since 1903 and is committed to moving forward as a safe and sound independent community bank.